An all-cap approach makes sense in today’s US equity market

After a difficult 2022 for investors, the US equity market narrative has turned more positive in 2023. However, this positivity feels premature, in our view. The equity risk premium currently available from the US equity market is around historically low levels, which makes for a disappointing risk/reward profile. Stock selection will likely drive near‑term US equity returns. An all‑cap remit provides the flexibility to find alpha sources from across the entire market.